PIC invests up to £200m in retirement village venture

The insurer’s investment – its first in the emerging UK retirement residence sector – is a joint venture with specialist property lender and investor, Octopus Real Estate. The joint venture is called Senior Living Investment Partners.

The retirement communities developed under the joint venture are expected to provide housing for approximately 2,000 elderly residents and will include lifestyle and wellness facilities such as restaurants, gyms, spas, swimming pools and outdoor areas. common for residents.

Hayley Rees, Managing Director of PIC Capital, said: “The UK retirement residence sector is a growing market, with huge untapped potential which is growing day by day as the population ages and the supply of new housing is lagging behind demand. It was vitally important to our entry into this sector that we found a partner aligned with our vision of generating tremendous social value while delivering long-term value to our parties. stakeholders.

“It was clear from our early conversations with the Octopus team that they were that partner, and we look forward to working together to bring about meaningful change in regional communities and society as a whole.”

Octopus said it was working with care home operators to develop communities – noting it had an “immediate pipeline of prospects”, ready to deliver top-quality communities in the months and years to come .

Kevin Beirne, Head of Retirement Residences at Octopus Real Estate, added, “We are delighted to be working with PIC on this retirement joint venture. The rapid development of more retirement communities presents a great opportunity for investors, operator partners, those nearing or retiring, and for the UK and the government’s upgrade program In this sector, we work together knowing that we are helping to tackle some of the Britain’s biggest problems, including the housing crisis and pressures on health services.

“The launch of the Senior Living Investment Partners joint venture is further proof of the great potential of this growing alternative residential sector. PIC is at the forefront of driving change, embracing new ideas and from identifying innovative solutions in the pension sector, with our vision to reinvent real estate investment by considering purpose and impact as well as profit.”

This transaction is Octopus Real Estate’s second retirement investment strategy; the former having invested equity in retirement communities with over £700m of gross development value, or the projected value of a completed development, alongside leading developers and operators.

It is hoped that the joint venture with PIC will deliver around £1bn of gross development value.

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